RMK to pay EUR 30 million in dividends to the State 09.03

The
Supervisory Board of RMK approved the audited economic results for 2016,
according to which turnover reached EUR 178 million and operating profit was
EUR 50.6 million.The
Supervisory Board proposed to pay EUR 30 million in the form of dividends into
the national budget, which is one and a half times more that the EUR 19.6
million of the year before.

RMK sold 4
million cubic metres of timber last year. Eliminating the consequences of the
thunderstorm that hit the forests of Southern Estonia and the deforestation of
training grounds for the Defence Forces has raised this figure to 10% more than
last year and what was planned with the 2016 budget. The prices of timber
remained stable in 2016, but due to the greater sales volume, RMK’s turnover
grew by 8% and profit by 40% when compared to 2015. As for the type of
timber sold, logs accounted for 46%, pulp wood for 34%, firewood for 15%, and
wood chips and residuals for 5%.

The volumes
of silvicultural works also increased in 2016. A total of 20.2 million trees
were planted, i.e. 900,000 more than in 2015. Forest renewal was maintained on
24,000 hectares; clearance of young growth, to improve their habitat
conditions, was performed on 19,300 hectares; and thinning in middle-aged
forests was performed on 9000 hectares. Regeneration cutting was carried out on
10,500 hectares, which is 1% of state forest land.

Over the
year, the number of visits to the recreational and protected areas of RMK increased
by 100,000, reaching 2.3 million. RMK’s most popular recreational areas are
located around Tallinn and Nõva; the most visited national parks were Lahemaa
and Soomaa. The number of visits grew the most in Haanja and Karula, in the
regions of Aegviidu and Kõrvemaa, and around Tartu and Jõgeva. The growing
interest towards hiking in nature has been supported by sites that have been
reconditioned in recent years – e.g. Mohni nature trail, in Lahemaa; Orjaku
learning trail and Leemeti forest hut, in Hiiu County; Alatskivi learning
trail, in Tartu County; Marimetsa hiking trail’s lookout tower, in Lääne
County; and Koigi learning trail, in Saare County.

Nearly
53,000 enthusiasts took part in RMK’s nature education programmes. Last year
RMK contributed EUR 4.9 million to provide opportunities to move around in
nature and offer educational courses on nature.

RMK spent
EUR 1.9 million on nature conservation works in 2016, which is 10% more than
the year before. Under RMK’s lead, semi-natural biotic communities, i.e.
heritage biotic communities, were restored on 1000 hectares in 2016; out of
that, 963 hectares needed design cutting to specific requirements. Compared to
2015, three times more works were performed. To maintain semi-natural biotic
communities, RMK has entered into land use agreements with 349 natural and
legal persons.

The
restoration of marshland was completed on 70 hectares by the end of 2016, but
works are still in progress on more than 2700 hectares, which will be doubled
this year at a minimum. RMK also conducted specific works last year to improve
the habitat of 29 protected species.

RMK has
971,000 hectares in its possession, the value of which as a biological asset
has been established at EUR 2.92 billion.

For the
year 2015, EUR 19.6 million was paid to the State in the form of dividends, on
which income tax accounted for EUR 4.9 million. In 2015, RMK’s annual profit
was EUR 36.2 million. RMK forecasts the turnover and profit for 2017 to
reach EUR 178 million and EUR 39 million, respectively.

RMK cares
for one-fourth of Estonia; it is the keeper, protector and manager of the
forest and other natural biotic communities belonging to the Republic of
Estonia. RMK bases its operations on the international sustainable forestry
standards. RMK earns a profit for the state through forest management, growing
reforestation material, and organising forest and nature conservation works. In
addition, RMK establishes opportunities for nature walking in recreational and
protected areas and shapes nature awareness. RMK consists of the Sagadi Forest
Centre, the Elistvere Animal Park, AS Eesti Metsataim and the Põlula Fish Farm.
More than 700 people work for RMK.